Hyperinflation in Zimbabwe, Report Essay

January 2017 | 5 pages | ID: H4E9098F860EN
Sadia Saeed

Abstracts

Hyperinflation is the highest level of the inflation as the term itself is showing its meaning. It is the level of the inflation that is too tough to control and manage. It is the high enhancement in the general price scale of the products and services such as 50% increase in the month. The value of money is almost equal to zero or worthless in such case as it may lead to collapse of the currency and results in different social and economic challenges. There are different reasons of the hyperinflation such as the high increase in the supply of the money, dramatic shocks to the natural disasters and the wars and the shocking decrease in worth of the money because of the economic challenges. Hyperinflation in the Zimbabwe is the period of time in that the instability of the currency started and it is started soon after the start of the 1990’s as after the confiscation of the private property through the landowners as towards the termination of the involvement of the Zimbabwe in the second war of the Congo. The severity of the issue of the hyperinflation enhances in the 2008 and 2009 and it was challenging for the Zimbabwe to even compute its hyperinflation and after 2008, the state of Zimbabwe avoid filling the official inflation rates or statistics and that is why we do not find out any authentic source of the information of inflation, unemployment and other economic indicators after 2008. At the end of the 2008, the high inflation of the country was estimated at 79.6 billion percent (Mithun Mohan, 2014). Cont... (1000 words of this report)

Contents

Background
Macroeconomic Analysis
Zimbabwe Economic data
Causes of Issue
Role of financial institutes in hyperinflation in zimbabwe
How to Avoid Hyperinflation
Future of Issue
References